Here’s How the Housing Market Fared in December 2022

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Massachusetts: December 2022 by the Numbers

Median price, single-family homes: $535,000
Percent change from Dec. 2021: -3.2%
Median price, condos: $453,800
Percent change from December 2021:-6.5%
Number of single-family home sales, Dec. 2022: 2,824
Number of single-family home sales, Dec. 2021: 3,222
Number of condo sales, Dec. 2022: 1,468
Number of condo sales, Dec. 2021: 1,169

As temperatures cooled at the end of 2022, so did the Massachusetts housing market. After a year of historic highs, data released earlier this month from the Massachusetts Association of Realtors (MAR) shows that sales prices continue to decline, as did overall number of sales.

MAR reports that median sale prices dipped between 3 and 6.5 percent between December 2021 and December 2022. The median single-family home price went down to $535,500 while median condo prices decreased even more to $435,800. Meanwhile, December 2022 showed the lowest number of condo and home sales since MAR began tracking data in 2004.

David McCarthy, 2023 President of MAR and a broker at Keller Williams Realty, points to rapidly rising interest rates and the slower winter season as the culprits behind the recent price and sales number decline. The other reason for the drop? Those historically high home sale prices in 2021. But the continually record-breaking streak broke in early 2022 and things returned to somewhat normal, albeit a new normal housing pricing insanity.

Does this spell good news for house hunters gearing up to hit the market in 2023? Not to be the bearer of bad news, but McCarthy says he’s already seen more buyers coming to open houses and inquiring about available listings. As we’ve learned, it’s hard to predict what’s ahead in this volatile market, but like the groundhog’s shadow can point to an early spring, this uptick could very likely indicate a resurgence of buyers.

The price dip “is a strong reflection for what we were experiencing for interest rates,” McCarthy explains. “Since we’ve seen a little softening in the interest rates, we’ve seen home activity back up. I’m confident we’re going to see a decently active spring.”

So, expect more competition if you’re hitting the market this spring (or at least more than you’d like), fueled in part by a lack of listings. McCarthy said this issue, one that plagues communities nationwide, will likely continue to affect buyers in Greater Boston, an area that’s struggled with a housing shortage for a while now.

“It’s nowhere near what it needs to be to have a balanced market,” he says.

So expect still to see multiple offers—and maybe even some bidding wars—as you wade into 2023 real-estate waters. May the odds be ever in your favor, house hunters!